Loading...
HomeMy WebLinkAbout04 LIGHTING DISTRICTMEETING DATE: MAY 1, 2012 TO: JEFFREY C. PARKER, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS /CITY ENGINEER SUBJECT: APPROVE THE ENGINEERS REPORT FOR THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT AND SET A PUBLIC HEARING TO CONSIDER LEVYING FISCAL YEAR 2012 -2013 ASSESSMENTS SUMMARY At the February 21, 2012 meeting, the City Council ordered the preparation of an Engineer's Report for the Levy of Annual Assessments for the Tustin Landscape and Lighting District. The Engineer's Report has now been completed and is ready for City Council approval. Additionally, it is requested that the City Council declare its intention to levy annual assessments and set a public hearing for June 5, 2012. RECOMMENDATION It is recommended that the City Council: 1. Adopt Resolution No. 12 -42 approving the Engineer's Report for the Tustin Landscape and Lighting District for Fiscal Year 2012 -2013; and 2. Adopt Resolution No. 12 -43 declaring its intention to levy annual assessments for Fiscal Year 2012 -2013 and setting a public hearing for June 5, 2012. FISCAL IMPACT The landscape maintenance and public street lighting expenses within the Tustin Ranch area are typically recovered through the levy of the annual assessments for the District. The proposed Fiscal Year 2012 -2013 budget is $726,700 with proposed assessments of $520,674. Included in the assessments is an $8,517 charge to the City for parkland which will be paid through the City's general fund operating budget. In order to meet the District's budget needs at the conclusion of FY 2012 -2013, the City must consider additional funding to cover a deficit currently projected at $206,026 from the Reassessment District 95 -1 (RAD 95 -1) Construction Fund 431 available balance. The Finance Department has projected the RAID 95 -1 Construction Fund balance at the end of FY 2011 -2012 to be $2,358,931. BACKGROUND The Tustin Landscape and Lighting District was formed in 1985 to fund the maintenance of perimeter landscaping on the arterial highways and for the operation and maintenance of street lighting on public streets within the Tustin Ranch area. Assessments for the benefiting properties were first confirmed for Fiscal Year 1985 -1986 and each fiscal year thereafter. As property developed in the Tustin Ranch area, such development was required to annex to the District. The District currently consists of 5,704 parcels encompassing 457.68 acres. Tustin Landscape and Lighting District May 1, 2012 Page 2 As a result of procedures required by the passage of Proposition 218 on the November 1996 Statewide ballot, which added Article XIID to the State Constitution, the City re-analyzed the District regarding the special benefits associated with the improvements for each property in the District, commencing with Fiscal Year 1997-1998. Notices and ballots to approve the assessment including future adjustments based on increases in the Consumer Price Index (CPI) were mailed in the spring of 1997 to all property owners in the District. Subsequently, at the conclusion of a public hearing on July 7, 1997, the majority of returned ballots, weighted by assessed amount, approved the annual assessments. Assessment Districts AD 85-1 and AD 86-2 were formed in 1986 and 1988, respectively and $132,050,000 bonds were issued to fund the design and construction of public improvements including streets, traffic signals, drainage facilities, utility improvements, and landscaping. Streets constructed within these Districts included, but were not limited to, Jamboree Road, Tustin Ranch Road, Irvine Boulevard, Bryan Avenue, Portola Parkway and Pioneer Road. On January 15, 1996, Re-Assessment District No. 95-1 (RAD 95-1) was formed by Resolution No. 96-8, thereby consolidating AD 85-1 and AD 86-2 within the City of Tustin into a single district and authorizing the issuance of bonds to exonerate the previous bonds. Assessments levied under RAD 95-1 cover the same public infrastructure improvements within the City of Tustin as the previous Assessment Districts. On November 17, 2009, the City Council declared that construction of all required improvements was complete and, pursuant to Section 10427 of the California Streets and Highways Code, the remaining funds in RAD 95-1 were surplus and, as such, the remaining funds could be utilized for maintenance projects within the Tustin Landscape and Lighting District. These one-time funds have been utilized to offset annual District deficits in Fiscal Years 2009-2010, 2010-2011 and are proposed to be utilized for 2011-2012. An additional $1,500,000 has been utilized to fund the Tustin Ranch Irrigation System Upgrades/Rehabilitation CIP No. 10064. The Finance Department has projected the RAD 95-1 Fund balance at the end of FY 2011-2012 to be $2,358,931. DISCUSSION Based on the results of the 1997 ballot proceedings, the base assessment rate for Fiscal Year 1997-1998 may be increased in subsequent years by no more than the increase in the CPI for all urban consumers for the Los Angeles, Anaheim, and Riverside area. The percentage increase in the CPI for calendar year 2011 is 2.2%. The District's budget for Fiscal Year 2012-2013 has been increased per the maximum allowed by Proposition 218 to offset anticipated increases in operating expenses. Each year, the City estimates the cost to provide the street lighting and landscape maintenance services within the District. Staff estimates the proposed FY 2012-2013 budget to be $726,700, comprised of the following major components: arterial and collector street lighting; local residential lighting; and parkway, slope and trail landscaping. In addition to the 4% annual savings in landscape maintenance for the District pursuant to Council Action on August 2, 2011 (Spectrum Care Landscape Amendment No. 5); the Tustin Ranch Irrigation System Upgrades/Rehabilitation has reduced irrigation repairs and water usage throughout RAD 95-1, representing a combined savings of $43,400 this fiscal year. It is expected that the irrigation system improvements via CIP No. 10064 will continue to benefit the District by providing ongoing water cost savings. These savings will be utilized to offset the cost of a one- Tustin Landscape and Lighting District May 1, 2012 Page 3 time tree removal and replanting for the Tustin Ranch Paseo between Pioneer Road and Jamboree Road estimated at $30,000. Recent case law has required the Assessment Engineer to reevaluate how general and special benefits are defined within the District. General benefits must be identified, quantified and paid for from funds other than the assessment. In reviewing the improvements maintained within the District, the Assessment Engineer has identified general benefits related to arterial street lighting and the slopes along the eastside of Jamboree Road. The resulting total decrease of assessments is $80,025 comprised of decreases in arterial street lighting of $31,833 and parkway, slope and trail landscaping of $48,192 for the majority of the properties within the District. The costs related to these general benefits have been identified in the Engineer's Report and are proposed to be funded from the RAID 95-1 Fund. A letter from our Assessment Engineer, detailing these recent changes in General Benefit Analysis, is attached for reference. The resulting total costs to be assessed for lighting and landscape maintenance for Fiscal Year 2012-2013 are $85,397.00 and $435,277.00, respectively, for a total operating and maintenance assessment of $520,674.00. This total cost is then divided among the parcels on a proportionate share, based on a report prepared by consultant engineers. The precise method used to establish each parcel's special benefit may vary according to land usage and benefit area, but similar parcels with equal benefit from the District pay equal assessments. There are 5,704 parcels within the District for Fiscal Year 2012-2013, which remains unchanged from the previous fiscal year. The District includes three separate benefit areas based upon the special benefits received. • Benefit Area "A" Properties located in Benefit Area "A" pay only for Arterial and Collector Street Lighting (ACLT). Benefit Area "B" Properties located in Benefit Area "B" pay for Arterial and Collector Street Lighting, plus Parkway, Slope, and Trail Landscaping (ACLT + PSTL). • Benefit Area "C" Properties located in Benefit Area "C" pay for Arterial and Collector Street Lighting, plus Parkway, Slope, Trail Landscaping, plus Local Residential Street Lighting (ACLT + PSTL + LRLT). Those parcels that pay for local residential street lighting are located within the residential tracts that have public streets. Typically, owners of single-family residential parcels in each area pay an equal share. The proposed assessments to be paid by single family residential parcels in each of the following benefit areas are: • Benefit Area "A" (ACLT).. . ... ........ ....... $8.29 per year Benefit Area "B" (ACLT + PSTL) ... ...... ....... $64-89 per year Benefit Area "C" (ACLT +PSLT + LRLT) .................. ......... .....$103.01 per year The Engineer's Report prepared by Harris & Associates has been filed with the City Clerk and contains the following proposed levy of assessments for Fiscal Year 2012-2013 along with a comparable listing to last year's assessment. Tustin Landscape and Lighting District May 1, 2012 Page 4 ASSESSMENT RATE SUMMARY BY LAND USE FY 2011 -12 FBENEFIT AREA A B C A LAND USE ACLT ACLT + PSTL ACLT +PSTL +LRLT ACLT ACLT + PSTL ACLT +PSTL + LRLT Single Family Res. ($ /Dwelling Unit) $72.57/DU $100.79/DU $64.89/DU $103.01/DU Multi- family Res. ($ /Dwelling Unit) $54.43/DU $48.67/DU Non - Residential ($lac) $435.42/ac $389.34/ac Non -Res - Tustin Market Place ($ /ac) $68.34/ac $49.74/ac Golf Course ($lac) $290.28/ac $259.56/ac Vacant and Parks ($ /ac) $145.14/ac $129.78/ac It is recommended that the City Council adopt the two attached resolutions. These resolutions provide for the following: • Resolution No. 12 -42 approves the Engineer's Report for the Tustin Landscape and Lighting District for Fiscal Year 2012 -2013. • Resolution No. 12 -43 declares the City Council's intention to provide for an annual levy of assessment for the Tustin Landscape and Lighting District to levy and collect assessments pursuant to the Landscape and Lighting Act of 1972. Resolution No. 12 -43 also sets the date, time, and place for a public hearing concerning the annual levy of assessment for the District. The hearing is proposed for Tuesday, June 5, 2012 at 7:00 p.m. in the City Council Chambers, 300 Centennial Way, Tustin, California. Stack, P.E. Public Works /City Engineer Attachment(s): 1. Resolution No. 12 -42 2. Resolution No. 12 -43 3. Engineer's Report for Tustin Landscape and Lighting District, Fiscal Year 2012 -2013 4. Assessment Engineer Itr, dated April 23, 2012 S:1City Council Items12012 Council Items\Set a Public Hearing for TL &LD 12- 13.docx ATTACHMENT 1 Resolution No. 12-42 RESOLUTION NO. 12-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA APPROVING THE ENGINEER'S REPORT FOR THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT LEVY OF ANNUAL ASSESSMENTS FOR FISCAL YEAR 2012- 2013 WHEREAS, by Resolution No. 12-14, the City Council initiated proceedings for the 2012-2013 Fiscal Year for the levy of annual assessments and ordered the Engineer to prepare a report in accordance with Section 22565 of the State of California Streets and Highways Code and Proposition 218; and WHEREAS, pursuant to said Resolution, the Engineer has filed the report with the City Clerk; and WHEREAS, the City Clerk has submitted the report to the City Council and the City Council now has reviewed and examined the report as so submitted. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin that it determines and orders as follows: Section L That the report entitled "Engineer's Report for Tustin Landscape and Lighting District, Fiscal Year 2012-13" prepared by the Engineer, Harris & Associates, dated April 20, 2012, including description of improvement, estimated costs and diagram, as filed with the City Clerk, is hereby approved. Section 2: A copy of this report shall remain on file in the office of the City Clerk, PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 1 st day of May 2012. ATTEST: Pamela Stoker City Clerk John Nielsen, Mayor STATE OF CALIFORNIA COUNTY OF ORANGE )SS CITY OF TUSTIN 1, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council is five; that the above and foregoing Resolution No. 12-42 was duly and regularly passed and adopted at a regular meeting of the City Council held on the 1't day of May, 2012 by the following vote: PAMELA STOKER, City Clerk ATTACHMENT 2 Resolution No. 12-43 RESOLUTION NO. 12 -43 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA DECLARING ITS INTENTION TO PROVIDE FOR AN ANNUAL LEVY OF ASSESSMENT FOR FISCAL YEAR 2012 -2013 FOR THE IMPROVEMENT, MAINTENANCE AND SERVICING OF PUBLIC LANDSCAPING AND LIGHTING FACILITIES IN THE TUSTIN RANCH AREA WITHIN THE BOUNDARIES OF THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT AND TO LEVY AND COLLECT ASSESSMENTS PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 AND PROPOSITION 218 AND GIVING NOTICE THEREOF WHEREAS, the City Council by Resolution No. 12 -14 initiated proceedings for the annual levy of assessments for the Tustin Landscape and Lighting District pursuant to the provisions of the Landscaping and Lighting Act of 1972 (Part 2, Division 15 of the California Streets and Highways Code) as amended and Proposition 218; and WHEREAS, by said Resolution No. 12 -14, the City Council ordered the City Engineer to prepare a report pursuant to Section 22565 of said Code and Proposition 218; and WHEREAS, the City Engineer did prepare and file such a report and it was approved by the City Council on the 1st day of May 2012, with the passage and adoption of Resolution No. 12 -42. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin that it determines and orders as follows: Section 1: That the public interest and convenience require and it is the intention of the City Council of the City of Tustin to order the annual levy of assessments for Fiscal Year 2012 -2013 and to levy and collect said assessments pursuant to the provision of said Landscaping and Lighting Act of 1972 (Part 2 of Division 15 of said Streets and Highways Code) as amended and Proposition 218. Section 2: That the improvements to be undertaken consist of the installation, maintenance, servicing and operations of those certain public landscaping and lighting facilities located within the Tustin Landscape and Lighting District. The Assessment District designated as Tustin Landscape and Lighting District generally encompasses the portion of the City known as East Tustin, being north of the 1 -5 Freeway and east of Browning Avenue except the areas of all public streets, avenues, lanes, alleys, and rights -of -way provided, however, notwithstanding property owned by the railroad and public utility companies not used for public purposes shall be included in the district and not be excluded pursuant to the aforesaid exceptions. Section 3: That reference is hereby made to the Engineer's Report on file with the City Clerk and open to inspection for a fully detailed description of the improvements, the boundaries of the Assessment District and any areas therein, and the proposed assessments upon assessable lots and parcels of land within the District. Section 4: That said proposed maintenance, servicing and operation of landscaping and lighting, in the opinion of the City Council of the City of Tustin will be to the benefit of the property lying within the described boundaries of the Assessment District as said Assessment District is described and defined in said Engineer's Report. Resolution 12-43 May 1, 2012 Page 2 Section 5: Notice is hereby given that Tuesday, June 5, 2012, at the hour of 7:00 p.m. in the Tustin City Council Chambers, 300 Centennial Way, Tustin, California 92780 is hereby fixed as the time and place where all interested persons may appear before the City Council and be heard concerning the annual levy of assessments of the District, and extent of the District, the services to be performed, and the proposed assessment and all other matters relating thereto. Protests must be in writing and must be filed with the City Clerk prior to the conclusion of the hearing. Any such protest shall state all grounds of the objection and, if filed by the property owner, shall contain a description sufficient to identify the property. Section 6: The City Clerk shall cause notice of the hearing to be given by causing the Resolution of Intention to be posted and published in the manner required by Part 2 of Division 15 of the Streets and Highways Code. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 1 st day of May 2012. ATTEST: Pamela Stoker City Clerk John Nielsen, Mayor STATE OF CALIFORNIA COUNTY OF ORANGE ) SS CITY OF TUSTIN 1, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council is five; that the above and foregoing Resolution No. 12-43 was duly and regularly passed and adopted at a regular meeting of the City Council held on the 15t day of May, 2012 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER, City Clerk ATTACHMENT 3 Engineer's Report for Tustin Landscape and Lighting District Fiscal Year 2012-2013 Engineer's Report for Tustin Landscape and Lighting Fiscal Year 2012 -13 Presented to the City of Tustin Orange County, California April 20, 2012 District City of Tustin — Landscape and Lighting District, FY 2012.13 April 20, 2012 Engineer's Report Page 1 ENGINEER'S REPORT TUSTIN LANDSCAPE AND LIGHTING DISTRICT The undersigned respectfully submit the enclosed report as directed by the City Council. The undersigned certifies that he or she is a Professional Engineer, registered in the State of California. D• April 20, 2012 Harris &Ass • clates ! /r/ /o. I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was filed in the office of the City Clerk on the day of .2012. City of Tustin Orange County, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached, was approved and confirmed by the City Council of the City of Tustin, California, on the _ day of , 2012. City of Tustin Orange County, California LIM rAtustin \fy12 -13 \reports \IImd1213 final rpt 04- 20- 12.docx City Clerk, MI Harris & Associates,. City of Tustin — Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 2 TABLE OF CONTENTS Submittal and Acknowledgments .................................................... ..............................I Introduction..................................................................................... ..............................3 Report.............................................................................................. ..............................4 Part A - Plans and Specifications ............................................... ..............................6 Part B - Estimate of Cost ........................................................... ..............................9 Part C - Assessment Roll .......................................................... .............................10 Part D - Method of Apportionment of Assessment .................. .............................11 Part E - Property Owner List .................................................... .............................20 Part F - Assessment Diagram ................................................... .............................20 Appendix Budget Detail / Maximum Assessment Rate Calculations Budget & Assessment Comparison Government Parcels Landscape Maintenance Facilities Map Assessment Diagram/Boundary Map Land Use Map Preliminary Assessment Roll (under separate cover) r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates - City of Tustin — Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 3 INTRODUCTION HISTORY The purpose of this report is to set forth findings and the engineering analysis to levy the assessments in the Tustin Landscape and Lighting District for the 2012 -13 fiscal year. The District was formed on July 15, 1985 to install and maintain certain street lighting and landscaping in the area bounded by Browning Avenue, Irvine Boulevard, Jamboree Road (formerly Myford Road) and the I -5 Freeway within the City of Tustin. Assessments for the benefiting property were confirmed for the first fiscal year, 1985 -86, and each fiscal year thereafter. As property developed in the Tustin Ranch area, such development was required to annex to the District. The current boundary is shown on the Assessment Diagram/Boundary Map, which is included in the Appendix. As a result of the new procedures required by Proposition 218 (Prop. 218), which was approved on the November 1996 Statewide ballot and added Article XIIID to the State Constitution, the City re- analyzed the District regarding the special benefits associated with the improvements for each property in the District, for the 1997 -98 fiscal year. Notices and ballots to approve the Assessment, including a Consumer Price Index (CPI) adjustment, were mailed to all property owners in the District, and a majority of the returned Assessment ballots approved the Assessment, including potential adjustments for increases in the CPI in future years. IMPROVEMENTS The District improvements consist solely of parkway landscaping, trail landscaping, slope landscaping, arterial and collector street lighting, and local residential street lighting in public rights - of -way and dedicated easements. The District does not install or maintain parks or median islands in roadways. SCOPE OF REPORT This report covers the levy of annual assessments for the 2012 -13 fiscal year, based on the methodology adopted by the City Council in the 1997 -98 fiscal year. The base assessment rate which may be levied for each Equivalent Dwelling Unit (EDU) may be increased by the CPI for all Urban Consumers for the Los Angeles, Anaheim, Riverside Area in any calendar year. The intent of applying the annual CPI adjustment to the base assessment rate is to maintain the value of the maintenance work, in relation to the increased cost of the maintenance. Therefore, the rates applied in FY 1997 -98 are equal to the maximum rates today, when you consider the increased cost of living. In 1997, property owners within the District were noticed for and they approved, by assessment ballot proceeding, potential adjustments in the rates based on the annual CPI. The CPI for Calendar Year 2011 (December 2010 to December 2011) is 2.2 %. Since the notice to property owners in 1997 included a potential CPI adjustment each subsequent year, and the property owners approved the potential range of rates, it is not necessary to hold an assessment ballot proceeding any year in which such an adjustment is made. For the calculation of the maximum assessment for each Fiscal Year, please refer to the Appendix. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates _ City of Tustin — Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 4 CITY OF TUSTIN FISCAL YEAR 2012 -13 ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND ARTICLE XIIID OF THE CALIFORNIA CONSTITUTION Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California (the 1972 Act), Article XIIID of the California Constitution and in accordance with the Resolution of Initiation adopted by the City Council of the City of Tustin, State of California, in connection with the proceedings for: TUSTIN LANDSCAPE AND LIGHTING DISTRICT hereinafter referred to as the "Assessment District" or "District ", I, K. Dennis Klingelhofer, P.E., the authorized representative of Harris & Associates, the duly appointed ENGINEER OF WORK, submit herewith the "Report" consisting of six (6) parts as follows: PART A PLANS AND SPECIFICATIONS Plans and specifications for the improvements are as set forth on the lists thereof, are on file in the Office of the City Engineer and are incorporated herein by reference. PART B ESTIMATE OF COST An estimate of the costs of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk and incorporated herein by reference. PART C ASSESSMENT ROLL An assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the Assessment District is on file in the Office of the City Clerk and incorporated herein by reference. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates - City of Tustin — Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 5 PART D METHOD OF APPORTIONMENT The method of apportionment of assessments indicates the proposed assessment of the net amount of the costs and expenses of the improvements to be assessed upon the several lots and parcels of land within the Assessment District in proportion to the estimated special benefits to be received by such lots and parcels. PART E PROPERTY OWNER LIST A list of the names and addresses of the owners of real property within this Assessment District, as shown on the last equalized roll of the Assessor of the County of Orange, is keyed to the records of the Assessor of the County of Orange which are incorporated herein by reference. PART F ASSESSMENT DISTRICT DIAGRAM The Diagram of the Assessment District Boundaries showing the exterior boundaries of the Assessment District, the boundaries of any benefit areas within the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District is on file in the Office of the City Engineer and is incorporated herein by reference. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Orange for the fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates - City of Tustin — Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 6 PART A PLANS AND SPECIFICATIONS The facilities, which have been constructed within the City of Tustin, and those which may be subsequently constructed, will be serviced and maintained as generally described as follows: DESCRIPTION OF IMPROVEMENTS FOR THE CITY OF TUSTIN LANDSCAPE AND LIGHTING DISTRICT FISCAL YEAR 2012 -13 The existing facilities to be maintained and serviced include street lighting and arterial landscaping as described herein. • LIGHTING The street lighting system in the District consists of 760 lights. A summary by type and size follows: No. Size of Lumens Type of Light 375 16,000 High Pressure Sodium Vapor 11 9,500 High Pressure Sodium Vapor 374 5,800 High Pressure Sodium Vapor The area is built -out; therefore no additional street lights are anticipated. • LANDSCAPING The arterial landscaping includes parkway, slope and trail landscaping in the Tustin Ranch area, specifically: • the southerly side of Bryan Avenue between Browning Avenue and Tustin Ranch Road • the northerly side of Bryan Avenue between Browning Avenue and Jamboree Road, excepting that portion adjacent to the SCE substation • the easterly side of Browning Avenue between the northerly corner of Tract No. 13094 (southerly of Bent Twig Lane) and El Camino Real, including area from APN 500- 201 -02 for a future overcrossing, but excepting that portion adjacent to the SCE substation • the westerly side of Tustin Ranch Road between the Santa Ana I -5 Freeway and Jamboree Road, excepting that portion between the northerly boundary of Tract No. 16782 ( -350 feet northerly of Rawlings Way) and Portola Parkway. • the easterly side of Tustin Ranch Road between Bryan Avenue and Jamboree Road, excepting that portion adjacent to Heritage Park between Heritage Way and Kinsman Circle, that portion adjacent to the Golf Course northerly and southerly of the main entrance, and that portion adjacent to the Citrus Ranch Park site at Tustin Ranch Road and Portola Parkway r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates _ City of Tustin - Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 7 • the southerly side of Irvine Boulevard between the westerly boundary of Tract No. 13053 and the easterly boundary of Tract No. 13038 ( ±630 feet easterly of Myford Road) • the northerly side of Irvine Boulevard between the westerly City limits and Jamboree Road • the westerly side of Jamboree Road from Bryan Avenue northerly 1,100 feet to the northerly boundary of Tract No. 13030 • the westerly side of Jamboree Road between Irvine Boulevard and the northerly City limits, except that portion adjacent to the Tustin Sports Park • the slopes on the westerly side of Jamboree Road between the northerly City limits and 600 feet southerly • the slopes and parkways on the easterly side of Jamboree Road between the northerly City limits and Tustin Ranch Road, including the slopes granted to the City by the Transportation Corridor Agency per Instrument No. 1999048101 recorded January 22, 1999 (net acreage increase of 4.11 acres) • La Colina Drive, northerly and southerly sides, between Tustin Ranch Road and the westerly City limits • Portola Parkway, both northerly and southerly sides, between Jamboree Road and Tustin Ranch Road • Equestrian /Hiking Trail between Tustin Ranch Road /Portola Parkway and Peters Canyon Regional Park • Paseo for public access between Jamboree Road and Pioneer Road adjacent to Tract Numbers 14366 and 14576 The total landscaped area is approximately 51 acres. These areas are shown on the Landscape Maintenance Facilities Map, in the Appendix. The District will fund costs in connection with the District maintenance and servicing including, but not limited to, personnel, electrical energy, water, materials, contracting services, and other expenses necessary for the satisfactory operation of these facilities. Reference is made to Part "D" of this report for a discussion of the Benefit Areas and the facilities associated with them which are serviced and maintained. The facilities are described as follows: Landscapin and nd Appurtenant Facilities Facilities include but are not limited to: Landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalk maintenance resulting from landscape growth and appurtenant facilities, in public rights -of -way, parkways, and dedicated easements within the boundaries of said Assessment District. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates - City of Tustin - Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 8 Lighting and Appurtenant Facilities Facilities include but are not limited to: Poles, fixtures, bulbs, conduits, conductors, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public rights -of -way and dedicated easements within the boundaries of said Assessment District. The public lighting system shall be maintained to provide adequate illumination. Electricity for street lights shall be furnished by the Southern California Edison Company, and it shall be adequate for the intended purpose. Rates for power shall be those authorized by the California Public Utilities Commission. Maintenance means the furnishing of services and materials for the ordinary and usual operation, maintenance and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping, public lighting facilities or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste. Servicing means the furnishing of water for the irrigation of the landscaping and the maintenance of any of the public lighting facilities or appurtenant facilities and the furnishing of electric energy for the public lighting facilities, or for the lighting or operation of landscaping or appurtenant facilities. The plans and specifications for the improvements, showing the general nature, location and the extent of the improvements to be serviced and maintained, are on file in the office of the City Engineer and are by reference herein made a part of this report. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates - City of Tustin — Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 9 PART B ESTIMATE OF COST The City's budget for the maintenance and service costs, shown below, details the estimated costs and fund balances for Fiscal Year 2012 -13 as available at the time of preparation of this report. The 1972 Act provides that the total cost can be recovered in the assessment spread including incidental expenses. This was not changed by Article XIIID of the California Constitution. The costs can include engineering fees, legal fees, printing, mailing, postage, publishing, and all other related costs identified with the district proceedings. The Reserves, District Administration and Projected Fund Balance items have been prorated based on the budget amounts. FY 2012 -13 BUDGET & ASSESSMENT District Less Projected General * *Additional Reserve Admin. Fund Balance Benefit City Total to Service Category Budget (50% Max.) (*No. 6018) 6/30/2011 Contribution Contribution Asmt Arterial and Collector Street Lighting $101,200 $20 $1,945 $0 ($31,833) $0 $71,332 *Object No. 6220 Local Residential Lighting $13,800 so $265 $0 $0 $0 $14,065 *Object No. 6220 Parkway, Slope and Trail Landscaping $598,000 $0 $11,490 $0 ($48,192) ($126,021) $435,277 *Object Nos. 6028, 6132, 6335, 6350 Totals $713,000 $20 $13,700 $0 ($80,025) ($126,021) $520,674 Total to Assessment: $520,674 * For descriptions of the object numbers, refer to the Budget Detail' table in the Appendix * *Additional contribution required due to budget exceeding maximum allowable assessments. Note: District Administration Costs are prorated based on the Budget Amounts and include Orange County's charge of 0.3% of the assessment for placement and collection on the property tax roll. The 1972 Act requires that a special fund be set -up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. The City will make funds available to the District to ensure adequate cash flow, and will be reimbursed upon receipt of assessments. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year. The 1972 Act allows a reserve for cash flow not to exceed 50% of the budget. For a breakdown of the costs by Service Category and Benefit Area, please see `Benefit Areas" on page 16 of this report. r: \tustin \fyl2 -13 \reports \IImdl213 final rpt 04 -20 -12 rev.docx Harris & Associates - City of Tustin — Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 10 PART C ASSESSMENT ROLL The Assessment Roll is a listing of the proposed assessment and the amount of assessment for Fiscal Year 2012 -13 apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office, and contained in the Assessment Roll on file in the office of the City Clerk of the City of Tustin, which is incorporated herein by reference. The description of each lot or parcel is part of the records of the Assessor of the County of Orange and these records are, by reference, made part of this Report. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates - City of Tustin — Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 11 PART D METHOD OF APPORTIONMENT OF ASSESSMENT GENERAL The 1972 Act permits the establishment of assessment districts by cities for the purpose of providing certain public improvements which include the construction, maintenance and servicing of street lights, traffic signals and landscaping facilities. Street and Highways Code Section 22573 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. The 1972 Act permits the designation of areas of benefit within any individual assessment district if "by reason of variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements." (Sec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." In addition, Proposition 218 (Prop. 218), the "Right to Vote on Taxes Act" which was approved on the November 1996 Statewide ballot and added Article XIIID to the California Constitution, requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Prop. 218 provides that only special benefits are assessable and the City must separate the general benefits from the special benefits. Prop. 218 also requires that publicly owned property which benefit from the improvements be assessed. REASON FOR THE ASSESSMENT The assessment is proposed to be levied to defray the costs of the maintenance and servicing of landscaping, lighting and appurtenant facilities, including but not limited to, personnel, electrical energy, utilities such as water, materials, contracting services, and other items necessary for the satisfactory operation of these services. EQUIVALENT DWELLING UNITS Since the assessment will be levied against parcels of property as shown on the tax roll, the final charges must be assigned by Assessor's Parcel Number. If assessments were to be spread just by parcel, not considering land use or parcel size, a single family parcel would be paying the same as a 50 unit apartment parcel or a large commercial establishment in a similar zone and this would not be equitable. The single family residential lot has been selected as the basic unit for calculation of assessments and is defined as one Equivalent Dwelling Unit (EDU). A methodology has been developed to calculate the EDU's for other residential land uses and for non - residential parcels. Every land -use is converted to EDU's: parcels containing apartments are converted to EDU's based on the number of dwelling units on each parcel of land; commercial parcels are converted based on the lot size of each parcel of land. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates _ City of Tustin - Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 12 The EDU method is seen as the most appropriate and equitable method of spread for landscape and lighting districts, as the benefit to each parcel from the improvements are apportioned as a function of land -use type and size. Single Family Residential (SFR). Parcels zoned for single family residential uses are assessed 1 EDU per dwelling unit. Parcels designated as SFR land -use will be assessed 1 EDU per dwelling unit, including vacant subdivided residential lots and vacant land zoned for single family residential uses with a tentative or final tract map. Multiple Family Residential. Multiple- residential (including condominiums) land use equivalencies are determined based on the number of dwelling units on each parcel. Due to population density and size of structure relative to the typical single family residence, each dwelling unit defined as multi - family residential, including condominiums, would be 0.75 EDU. The EDU's assigned to a multiple- residential parcel are calculated by multiplying the number of dwelling units by the EDU factor of 0.75. This includes vacant multi - family residential parcels zoned for multiple- residential uses with a tentative or final tract map. Non - Residential. In converting non - residential properties to EDU's, the factor used is the City of Tustin's typical standard single family residential lot area and the number of lots that could be subdivided into an acre of land. All properties that are developed for non - residential uses are therefore assigned 6 EDU's per acre. These include commercial, industrial, church, school and other non - residential uses. Vacant Parcels with No Development Designation. Vacant parcels with no development designation or without a tentative or final map are assigned a reduced equivalency due to their current lack of immediate development potential. Based upon the opinions of professional appraisers appraising current market property values for real estate in Southern California, the land value portion of a property typically ranges from 20 to 30 percent of the total value of the property. In Tustin Ranch, the land value portion of a single family detached residence appears to be typically one -third or higher of the total value based on the County Assessor's tax rolls. Therefore, vacant parcels are assigned equivalency units at the rate of one -third of improved property which is 6 EDU /acre x one -third = 2 EDU /acre. Park parcels are also considered as vacant with no development potential, and are assessed at that rate. Peters Canyon Regional Park is a large, natural, open space park with very few facilities, which straddles the cities of Orange and Tustin and a portion of unincorporated county area. The park has many access points around its perimeter and one is within the Tustin Ranch area. This park receives a very small amount of benefit relative to its size, and it seems reasonable to compare it to other existing parks within Tustin Ranch. At the time the district was formed, there were seven developed parks, five public parks (Camino Real, Cedar Grove, Heritage, Laurel Glen, and the Tustin Sports Park) and two private parks, with an average park size of 6.26 acres'. Therefore, 6.26 acres have been used to estimate the relative benefit Peters Canyon Regional Park receives. Golf Course Property. Golf Course parcels are developed commercial property, but the development is at a very low level. Therefore, golf course parcels are assessed at a rate between developed and vacant land, at twice the rate of vacant parcels with no development designation, which is 2.0 EDU /acre x 2 = 4.0 EDU /acre. 'As of FY 1997 -98, when the District was approved by property owner ballot. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx City of Tustin - Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 13 Public Property. Article XIIID of the California Constitution requires that all benefiting public properties be assessed for their fair share of the special benefit. Public property which is designated for residential or non - residential purposes (such as schools and fire stations) will be assessed the same as private property with the same designation. Public parks will be assessed the same as vacant parcels with no development designation. Exempt Property. Excepted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public drainage, public easements and rights -of -ways, public greenbelts and parkways. Also excepted from assessment would be utility rights -of -way, common areas (such as in condominium complexes), landlocked parcels, unbuildable parcels vacated by the City, and parcels designated on Tract or Parcel Maps for landscaping. EQUIVALENT DWELLING UNIT (EDU) FORMULA Land Use Basic Unit x EDU Factor = EDU Rates Single Family Res. (SFR) 1 D.U. x 1.00 = 1 EDU /DU Multi-family Res. (including Condos) 1 D.U. x 0.75 = 0.75 EDU/DU Commercial/Industrial and other Non - Residential (including Schools) 1 Acre x 6.00 = 6.0 EDU /ac Vacant (including Parks) 1 Acre x 2.00 = 2.0 EDU /ac Golf Courses 1 Acre x 4.00 = 4.0 EDU /ac BENEFIT ANALYSIS STREET LIGHTING BENEFIT Proper maintenance and servicing of the street lighting system benefits all properties within the District by providing security, safety and community character and vitality as outlined below. Street lights provide only incidental benefits to motorists traveling to, from or through the area. SPECIAL BENEFITS OF STREET LIGHTING Security and Safety Community Character and Vitality • Mitigates crime • Promotes social interaction • Alleviates the fear of crime • Promotes business and industry • Enhances pedestrian safety • Contributes to a positive nighttime visual image A large portion of the City of Tustin is within an Ad Valorem Lighting Maintenance District and is paying for the operation and maintenance of street lights in a similar manner. The area of the District was not a part of this Ad Valorem Maintenance District. Therefore, to fund the public street lights in the developing area, in 1985 the City established the 1972 Landscape and Lighting District. Those properties that are adjacent to private streets pay for their local private street lights through their Home Owners Association fees. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates ._ �� City of Tustin - Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 14 Arterial and Collector Lighting. Street lighting on the arterial and collector streets provides special and direct benefits to all properties within the District, as these lighting benefits are directly related to the positive enhancement of the Community and therefore increase property desirability and quality of life. All properties within the District receive a special benefit from lighting on the arterials and collectors. The portion of the arterial lighting above what is required to illuminate a typical residential neighborhood is for vehicular traffic and is a general benefit. The typical local light is 5,800 lumens whereas the arterial light is 16,000 lumens, therefore 63.75% of the arterial light cost is general benefit. Lighting at intersections, which is defined as safety lighting, is considered to be the minimum lighting requirement for vehicular safety; therefore, safety lighting represents the general benefit portion of street lighting and is not assessed. Traffic Signals are also considered to provide a general benefit and are not assessed. Street lights which are not adjacent to the development in the District are deemed not to benefit the area. Street lights on the east side of Jamboree Road, north of the I -5 Freeway, which provide benefit to the property on the east side of Jamboree, are not included in this District and the costs will not be assessed. The following table shows the number of parcels, dwellings, acres and EDUs for each land use type that receive this benefit. NOTE ON DIFFERENCES IN THE ABOVE TABLE: (1) County Assessor acreage adjustment to APN 500- 291 -20 Local Residential Lighting. Many of the residential units in the District have private street lighting systems directly adjacent to their homes. This lighting is usually provided by a Home Owners Association, and payment for the lights are usually made through association dues or assessments. Parcels that have local residential street lighting provided by the City receive special and direct local lighting benefit and are assessed for those local lights. There are eighty - seven local residential 5,800 lumen lights and four 9,500 lumen lights. The cost for these lights is assessed only to these benefiting parcels. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates. - Arterial & Collector Li h ing Benefit FY2011 -12 FY2012 -13 B Land Use Parcels Dwellings Acres EDUs Parcels Dwellings Acres EDUs Single Family Res. 2,626 2,626 2,626.000 2,626 2,626 2,626.000 Multi - family Res. 2,974 5,100 3,825.000 2,974 5,100 3,825.000 Non - Residential 60 183.454 1,100.724 60 184.979 (1) 1,109.874 Schools 10 48.573 291.438 10 48.573 291.438 Vacant 0 0.000 0.000 0 0.000 0.000 Parks 22 72.135 144.270 22 72.135 144.270 Golf Course 12 151.991 607.964 12 151.991 607.964 Total 5,704 7,726 456.153 8,595.3961 5,704 7,726 457.678 8,604.546 NOTE ON DIFFERENCES IN THE ABOVE TABLE: (1) County Assessor acreage adjustment to APN 500- 291 -20 Local Residential Lighting. Many of the residential units in the District have private street lighting systems directly adjacent to their homes. This lighting is usually provided by a Home Owners Association, and payment for the lights are usually made through association dues or assessments. Parcels that have local residential street lighting provided by the City receive special and direct local lighting benefit and are assessed for those local lights. There are eighty - seven local residential 5,800 lumen lights and four 9,500 lumen lights. The cost for these lights is assessed only to these benefiting parcels. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates. - City of Tustin - Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 15 The following table shows the number of parcels, dwellings and EDUs that receive this benefit. There were no changes from the previous fiscal year. Local Residential Lighting Benefit By Land Use Parcels Dwellings EDU's Single Family Residential 369 369 369.000 369 369 369.000 LANDSCAPING BENEFIT Trees, landscaping, hadscaping and appurtenant facilities, if well maintained, provide beautification, shade and enhancement of the desirability of the surroundings, and therefore increase property value. In Parkways and Land Values, written by John Nolan and Henry V. Hubbard in 1937, it is stated: ...there is no lack of opinion, based on general principals and experience and common sense, that parkways do in fact add value to property, even though the amount cannot be determined exactly.... Indeed, in most cases where public money has been spent for parkways the assumption has been definitely made that the proposed parkway will show a provable financial profit to the City. It has been believed that the establishment of parkways causes a rise in real estate values throughout the City, or in parts of the City,... It should be noted that the definition of "parkways" above may include the roadway as well as the landscaping along side the roadway. Landscaping along recreational trails and greenbelts, if well maintained, provide beautification and enhancement of the desirability of the surroundings, and therefore increase property value. In Greenways for America by Charles E. Little, it is stated: ... [real estate] agents routinely advertise properties as being on or near the trail.... property near but not immediately adjacent to the Burke - Gilman Trail is significantly easier to sell and, according to real estate agents, sells for an average of 6 percent more as a result of its proximity to the trail. Property immediately adjacent to the trail, however, is only slightly easier to sell .... trails are an amenity that helps sell homes, increase property values and improve the quality of life. Additionally, the National Recreation and Park Association, in June 1985, stated: The recreation value is realized as a rise in the value of land and other property in or near the recreation area, and is of public interest to the taxpayers, who have a stake in a maximum of total assessed values. The District enjoys a higher level of landscaping and streetscaping in their parkways and slopes than the rest of the City of Tustin. The City provides funding for the landscaped medians in the area, so these costs are not assessed. Additionally, a pedestrian and equestrian trail, linked with the regional r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates._ City of Tustin - Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 16 trail system, is landscaped and beautified by the District_ The landscape improvements along the arterial and collector streets, in the parkways and slopes, and the regional trail enhance the beauty of the area and benefit all parcels in the community. Excepted from this landscaping benefit are the Tustin Marketplace, Tustin Annex, and the Tustin Auto Center, which provide their own landscaping adjacent to their properties at an even higher level than the rest of the District. Landscaping along roadways provides only incidental benefits to motorists traveling to, from or through the area. Slopes along the easterly side of Jamboree Road are considered general benefit and reflect 8.1% of the total landscaping maintained in the district (4.11 AC /51 AC). The following table shows the number of parcels, dwellings, acres and EDUs for each land use type that receive this benefit. BENEFIT AREAS There are three benefit areas within the District: Benefit Area A - parcels that receive only Arterial and Collector Street Light benefit. Benefit Area B - parcels that receive Arterial and Collector Street Light benefit and Parkway, Slope, and Trail Landscaping benefit. Benefit Area C - parcels that receive Arterial and Collector Street Light benefit, Parkway, Slope, and Trail Landscaping benefit, and Local Residential Lighting benefit. The following tables provide a summary of parcels, dwellings, acres, EDU's and Costs by Benefit Area for the District. The Service Category Costs are based on the EDU's and rates for each benefit area. Landscaped Parkway, Slope & Trail Benefit FY 2012 -13 FY 2011 -12 Parcels Dwellings FY 2012 -13 EDU's By Land Use Parcels Dwellings Acres EDU's Parcels Dwellings Acres EDU's Single Family Res. 2,626 2,626 2,626.000 2,626 2,626 5,294 2,626.000 Multi - family Res. 2,974 5,100 3,825.000 2,974 5,100 C 3,825.000 Non - Residential 19 32.624 195.744 19 0.000 32.624 195.744 Schools 10 48.573 291.438 10 7,726 48.573 291.438 Vacant 0 0.000 0.000 0 0.000 0.000 Parks 22 72.135 144.270 22 72.135 144.270 Golf Course 12 151.991 607.964 12 151.991 607.964 Total 5,663 7,726 305.323 7,690.416 5,663 7,726 305.323 7,690.416 BENEFIT AREAS There are three benefit areas within the District: Benefit Area A - parcels that receive only Arterial and Collector Street Light benefit. Benefit Area B - parcels that receive Arterial and Collector Street Light benefit and Parkway, Slope, and Trail Landscaping benefit. Benefit Area C - parcels that receive Arterial and Collector Street Light benefit, Parkway, Slope, and Trail Landscaping benefit, and Local Residential Lighting benefit. The following tables provide a summary of parcels, dwellings, acres, EDU's and Costs by Benefit Area for the District. The Service Category Costs are based on the EDU's and rates for each benefit area. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates._ FY 2011 -12 FY 2012 -13 By Benefit Area Parcels Dwellings Acres EDU's Parcels Dwellings Acres EDU's A 41 -- 150.830 904.980 41 -- 152.355 914.130 B 5,294 7,357 305.323 7,321.416 5,294 7,357 305.323 7,321.416 C 369 369 0.000 369.000 369 369 0.000 369.000 Total: 5,704 7,726 456.153 8,595.3961 5,704 7,726 457.678 8,604.5461 r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates._ City of Tustin - Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 17 Service Category Costs by Benefit Area FY 2011 -12 FY 2012 -13 Benefit Area Arterial & Collector Street Lights Local Residential Lighting Parkway, Slope & Trail Landscaping Total to Assessment Arterial & Collector Street Li hts Local Residential Lighting Parkway, Slope & Trail Landscaping Total to Assessment A 1 $10,312 $10,312 $7,578 1 $7,578 B $83,419 $447,954 $531,373 $60,695 $414,392 $475,087 C $4,204 $10,415 $22,576 $37,195 $3,059 $14,065 $20,885 $38,009 Totals $97,935 $10,415 $470,530 $578,880 $71,332 $14,065 $435,277 1 $520,674 Note: FY 2012 -13 totals may differ from the budgeted totals for each category due to rounding of the assessments. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates ._ �� City of Tustin - Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 18 ASSESSMENT RATE SUMMARY The tables below summarize the assessment amounts per EDU for each Benefit Area. Service Category and Benefit Area FY2012 -13 ASSESSMENT RATE SUMMARY ACLT - Arterial & Collector Lighting $8.29 / EDU FY2011 -12 FY2012 -13 Actual Max. As mt Rates Actual Total LRLT - Local Residential Lighting $38.12 / EDU PSTL - Pkwy, Slope & Trail Landscape $56.60 / EDU Asmt Rates (incl. CPI)* As tut Rates As tut BenefitAreaA (ACLT) $11.39 / EDU $11.64 / EDU $8.29 / EDU $7,578 Benefit Area B (ACLT +PSTL) $72.57 / EDU $74.17 / EDU $64.89 / EDU $475,087 Benefit Area C (ACLT + PSTL + LRLT) $100.79 / EDU 1 $103.01 / EDU 1 $103.01 / EDU 1 $38,009 $520,674 * See "Maximum Assessment Rate Calculations" in the Appendix for details on the calculation of the Max. Assessment Rates The base assessment rate which may be levied for each Equivalent Dwelling Unit (EDU) may be increased by the annual change in CPI for all Urban Consumers for the Los Angeles, Anaheim, Riverside Area in any calendar year by City Council approval each year. The CPI change for Calendar Year 2011 (December 2010 to December 2011) is 2.2 %. As discussed previously, each benefit area assessment rate is a combination of the service category cost per EDU. The maximum assessment rates per benefit area are fixed rates that increase based on CPI. The proposed assessed rates for each Benefit Area equal the maximum allowable rates. The proposed assessment rates by land use category for each Benefit Area are shown below. ASSESSMENT RATE SUMMARY BY LAND USE FY 2011 -12 FY 2012 -13 BENEFIT AREA: A B C A B C ACLT + ACLT + PSTL ACLT + ACLT + PSTL LAND USE ACLT PSTL + LRLT ACLT PSTL + LRLT Single Family Res. ($/Dwelling Unit) $72.57/DU $100.79/DU $64.89 / DU $103.01 / DU Multi- family Res. ($/Dwelling Unit) $54.43 / DU $48.67 / DU Non - Residential ($ /ac) $435.42 / ac $389.34 / ac Non -Res - Tustin Market Place ($ /ac) $68.34 / ac $49.74 / ac Golf Course ($ /ac) $290.28 / ac $259.56 / ac Vacant and Parks ($ /ac) $145.14 / ac $129.78 / ac r: \tustin \fyl2 -13 \reports \IImdl213 final rpt 04 -20 -12 rev.docx Harris & Associates ._ �� City of Tustin — Landscape and Lighting District, FY 2012.13 April 20, 2012 Engineer's Report Page 19 1, K. Dennis Klingelhofer, P.E. the authorized representative of Harris & Associates, the duly appointed Assessment Engineer, am of the opinion that the assessments have been apportioned in accordance with the estimated special benefit derived by each parcel and that the assessments do not exceed the reasonable cost of the proportional special benefit, per the assessment apportionment methodology approved by the City Council and the property owners within the assessment district via a property owner balloting proceeding in 1997 per the provisions of Article X11ID of the California Constitution. DATED: April 20, 2012 Harris & Associates o By: x Hp, 50255 ;V K. Dennis Klingelhof , P.E EXP. 6/30/13 * ASSESSMENT EN EER A. J% C1Vti1. QL�'� R.C.E. No. 50255 \ofi ratustinWy12- 131reparts111md1213 final rpt 04- 20- 12.docx Harris & Associates. City of Tustin - Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Page 20 PART E PROPERTY OWNERS LIST The property owner list with the names and addresses of each property owner of each lot or parcel, as shown on the Assessment Diagram referenced in Part F herein, is the list of property owners within the District boundaries as shown on the last equalized roll of the Assessor of the County of Orange and is, by reference, made part of this report. PART F ASSESSMENT DIAGRAM An Assessment Diagram for the District is on file in the office of the City Clerk. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of Orange, for the year when this Report was prepared, and are incorporated by reference herein and made part of this Report. r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris &Associates. City of Tustin — Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Appendix Appendix r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx m Harris & Associates. City of Tustin - Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Appendix BUDGET DETAIL FY 2012 -13 DISTRICT ANALYSIS WORKSHEET Object No. Description City's Budget ($) District Estimate of Costs ($) Comments 6018 Architect/Eng Services 13,700 13,700 Annual Engineer's Report - Dist. Admin.; County charge of 0.3% for placement on property taxbills 6028 Landscape Maintenance 352,000 352,000 Contract - Turf & groundcover maint. 6132 Tree Trimming Contract 132,000 132,000 Contract - approx 1,500 trees /yr 6220 Street Light Energy 115,000 101,200 13,800 Street lights - Arterial & Collector Street lights - Local 6335 Electric 14,000 14,000 For irrigation equipment 6350 Water 100,000 100,000 IRWD service areas DISTRICT TOTAL 726,700 726,700 FY 2005 -2006 Maximum Assessment Rate Calculations by Consumer Price Index (CPI) increases FY 2012 -13 CPI WORKSHEET r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Benefit Area B Benefit Area A CPI Max Rate ($) Actual Rate ($) Base Year FY 1997 -1998 1.2% 7.91 7.91 FY 1998 -1999 1.2% 8.00 7.87 FY 1999 -2000 2.2% 8.18 8.04 FY 2000 -2001 2.8% 8.41 8.04 FY 2001 -2002 3.7% 8.72 8.40 FY 2002 -2003 2.1% 8.90 8.90 FY 2003 -2004 3.7% 9.23 9.23 FY 2004 -2005 1.8% 9.40 9.40 FY 2005 -2006 4.4% 9.81 9.81 FY 2006 -2007 4.5% 10.25 10.25 FY 2007 -2008 3.3% 10.59 9.79 FY 2008 -2009 4.2% 11.03 10.82 FY 2009 -2010 0.1% 11.04 11.04 FY 2010 -2011 1.8% 1124 FY 2011 -2012 1.3% 11.39 FY 2012 -2013 2.2% 11.64 Ej r: \tustin \fy12 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Benefit Area B CPI Max Rate ($) Actual Rate ($) 50.38 50.38 1.2% 50.98 50.98 2.2% 52.10 52.10 2.8% 53.56 52.10 3.7% 55.54 55.54 2.1% 56.71 56.71 3.7% 58.81 58.81 1.8% 59.87 59.87 4.4% 62.50 62.50 4.5% 65.31 65.31 3.3% 67.47 67.47 4.2% 70.30 70.30 0.1% 70.37 70.37 1.8% 71.64 71.64 1.3% 72.57 72.57 2.2% 1 74.171 64.89 Benefit Area C CPI Max Rate ($) Actual Rate ($) 69.96 69.96 1.2% 70.80 70.27 2.2% 72.36 71.82 2.8% 74.39 71.82 3.7% 77.14 76.38 2.1% 78.76 78.76 3.7% 81.67 81.67 1.8% 83.14 83.14 4.4% 86.80 86.80 4.5% 90.71 90.71 3.3% 93.70 93.70 4.2% 97.64 97.18 0.1% 97.74 97.74 1.8% 99.50 99.50 1.3% 100.79 100.79 2.2% 103.01 103.01 Harris & Associates _ City of Tustin - Landscape and Lighting District, FY 2012 -13 April 20, 2012 Engineer's Report Appendix Budget & Assessment Comparison FY 2012 -13 Budget & Assessment Total to Assessment: $520,674 *For descriptions of the object numbers, refer to the 'Budget Detail' table in the Appendix * *Additional contribution required due to budget exceeding maximum allowable assessments. FY 2011 -12 Budget & Assessment (from previous Engineer's Report) District Less Projected General * *Additional Reserve Reserve Admin. Fund Balance Benefit City Total to Service Category Budget (50% Max.) (*No. 6018) 6/30/2011 Contribution Contribution As tut Arterial andCollector Street Lighting $101,200 $20 $1,945 $0 ($31,833) $0 $71,332 *Object No. 6220 Local Residential Lighting $13,800 $0 $265 $0 Local Residential Lighting $13,800 $0 $265 $0 $0 $0 $14,065 *Object No. 6220 Parkway, Slope and Trail Landscaping $598,000 $0 $11,490 $0 ($138,960) $470,530 Parkway, Slope and Trail Landscaping $598,000 $0 $11,490 $0 ($48,192) ($126,021) $435,277 *Object Nos. 6028, 6132, 6335, 6350 $0 $13,700 $0 ($147,820) $578,880 Totals $713,000 $20 1 $13,700 1 $0 $80,025 ($126,021) $520,674 Total to Assessment: $520,674 *For descriptions of the object numbers, refer to the 'Budget Detail' table in the Appendix * *Additional contribution required due to budget exceeding maximum allowable assessments. FY 2011 -12 Budget & Assessment (from previous Engineer's Report) Total to Assessment: 1 $578,880 * For descriptions of the object numbers, refer to the 'Budget Detail' table in the Appendix. Lighting and Landscape District Fund Balance Projection Beginning Fund Balance, 7/01/2011 Projected Expenditures, FY 2011 -12 Projected Revenues, FY 2011 -12 Projected Contribution to make budget whole Projected Ending Fund Balance, 6/30/2012 $0 per Mid Year Budget $692,700 per Mid Year Budget Projections $570,000 Projected annual Assessment District Revenues $122,700 Projected contribution from RAD 95 -1 Construction Fund $0 r: \tustin \fyl2 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates _ District Less Projected Reserve Admin. Fund Balance City Total to Service Category Budget (50% Max.) ( *No. 6018) 6/30/2010 Contribution Asmt Arterial and Collector Street Lighting $101,200 $0 $1,945 $0 ($5,210) $97,935 *Object No. 6220 Local Residential Lighting $13,800 $0 $265 $0 ($3,650) $10,415 *Object No. 6220 Parkway, Slope and Trail Landscaping $598,000 $0 $11,490 $0 ($138,960) $470,530 *Object Nos. 6028, 6132, 6335, 6350 Totals $713,000 $0 $13,700 $0 ($147,820) $578,880 Total to Assessment: 1 $578,880 * For descriptions of the object numbers, refer to the 'Budget Detail' table in the Appendix. Lighting and Landscape District Fund Balance Projection Beginning Fund Balance, 7/01/2011 Projected Expenditures, FY 2011 -12 Projected Revenues, FY 2011 -12 Projected Contribution to make budget whole Projected Ending Fund Balance, 6/30/2012 $0 per Mid Year Budget $692,700 per Mid Year Budget Projections $570,000 Projected annual Assessment District Revenues $122,700 Projected contribution from RAD 95 -1 Construction Fund $0 r: \tustin \fyl2 -13 \reports \IImd1213 final rpt 04 -20 -12 rev.docx Harris & Associates _ O N O O O O O N a) U U U U U U) Y U) U) U) O Y Y Y Y E Y Y Y Y Y E Y E C6 C6 C6 CO CO CO CO CO CO a) CO a) CO w C6 C a_ ca W M M W a W a_ W C a_ N p Y Y Z CO Q-' O C C C O O O O O O O CO OL W U U CO CO CO � fl� Q U Q U Q U Q U Q U CO fl� Q U CO fl� Q U CO fl� LLJ U U O U U 2 2 J U U U J a U o cn w Z O O O O O O O °o O O O O O °o O °o O O U U U U U U U U 0 U U U U U 0 U 0 U 0 0 U (n H I-- M — O M — 1-- O M LO M qqt qqt O qqt N M — M O O J N ZLo m L LO O M — I-- N M M M N I-- O O M O O W r W 00 CO N I— CO I— N LO CA O r— M O VL 2 O N O M qqt M LO N O � M O O O 1— � O O LO O C N O 63 CO 63 LO H3 — H3 H3 N — H3 613 LO N H3 N H3 613 O 613 LO H3 — H3 M H3 613 O H3 M M M H3 CV CV CV " Q N IN H) H) H) H) H) a >- y LL V) z Q w zH N m — LO M O N N I-- O M LO I-- O I-- M I-- O M O L M Zqqt O N N M M LO M O O 1-- O O O LO qqt 00 00 00 CO W W N I— O O N M O N Cl) O O r— r— 00 CA O 00 N 2— 00 LO LO O � M M M CA O — � H3 O N M N N M 60- 00 O H3 O LO LO — O CO LO H3 O 00 L 00 N O N O C N E!3 E!3 E!3 E!3 E!3 H3 CV H3 H3 H3 H3 H3 H3 C E!3 V N W C!) C!) C!) C!) C!) N W N Q N 0 N O O 00 00 U-) O O O O O O O M I-- O O O O O O W Cfl LO O LO O r— Cfl 00 — O Cfl qqt M Cfl CA — M LO M O I-- N N Cfl M O N N M 00 00 Cfl N N N N r O CA O V CO 4 M M U-) O O O O O N O M N Qr r H W Z N W a y Y Y Y Y Y Y Y 2 Y Y Y Y Y 2 Y 2 Y 2 2 2 Y W Zfy_ Of Of Of Of Of Of Of U Of Of fy_ Of Of U fy_ U Of U U U Of U J H M � Q z N Z m m m m m m m m m m m m m m m m m m m m m m H W Q C/) N m H � LL LL Cfl I-- O N 00 CA LO O 1-- M N M LO O 1-- L LO N O O O O O O O O O O O — — — — — — M N N O O M — M LO LO LO N N N N N N N N N N N D Z O N O N N N N N M N O O O O M O — — — — — — — — — — — — — — — — — — — — — — M N LO LO _ J a o O O O O O O O O — O — O — O — O — O — O — O — O — O — O — O — O — O — O — O N O N O U J Q U-) U-) U-) U-) U-) U-) U-) U-) U-) U-) Lo Lo Lo Lo Lo Lo Lo Lr) Lr) Lr) Lr) O O O N N O L O L O L N 0) () () () Oa_ Y O O Y Y O U Y W W W U W c c W W c a� H > c c > > > o co Z O CO CO O O c CO o O Q' w U U U C7 C7 U L L L VJ U) U U U U m LL m m 0 0 0 a) 0 0 0 i) i) U) n Z O O O O °o O o > cn cn > > cn > > — O cn U U � N O 7 m � J N Z N U') W W M I- O N M 00 qqt M N N C � N Q N I N 60 fA a >- y LL V) z Q W z0') r- U') r- 00 Un Un r- Z O qt U') U') N CO U') I-- CO W � W rn M O 00 M 00 CO 00 CO 00 N 2 00 r- N O O N m M m qqt OC N E!3 V N W E!? EA N W N Q N 0 N O O O O O O O Lr) O W M I- 00 M 00 O LO M 00 U N LO CO M N Q� H W Z N Way Y Y ry W U y Q U J H M � Q z N Z W m m m m m m m m m m H W Q C/) N m H � LL LL r- 00 O O N M I-- M O O 1 N N N M M M — O O CO 0 Lo Lo Lo Lo Lo Lo Lo N N co U Q ° ° ° ° ° ° ° ° N rn REDUCED SCALE CITY OF TUS-flN LANDSCAPE AND LIGHTING DISTRICT PETERS CANYON 114 ASSESSMENT DIAGRAM REGIONAL FOR THE PARK 2012-13 FISCAL YEAR 51 LANDSCAPE MAINTENANCE FACILITIES MAP .11 13 .......... ME "I 115 LEGEND —1111111;51 .......... . 11-42- -1 11 LANDSCAPE MAINTENANCE SLOPE MAINTENANCE 1141, ;"1 2 1 12 1-3 11 14 -1. 11171,-11. 5, 14 211 "I'3L4 1- 14 11 121�1111, �4 14 14-111 211 5� -4- -1 1,* j . ..... 1- 14 jH �j H�U 712W` 131 1; lllj'll,�1,17 3,1 IV�l 114 1�4 11 12 1 ` ­44 5" '7 V'02 352-,� 56 �3EO� HARRIS & ASSOCIATES .. ...... i" Park, '", "' CA 92614 6 FAX (949) 655 _ 39DO (949) 655-3995 111.1111.1 111112112 REDUCED SCALE CITY OF TUSTIN LANDSCAPE AND LIGHTING DISTRICT PETERS CANTON ASSESSMENT DIAGRAM REGIONAL FOR THE PARK 2012-13 FISCAL YEAR ASSESSMENT DIAGRAWBOUNDARY MAP 121 11 1 1� 1. 111, 9-21-1 1— 120� LEGEND BENEFIT AREA A 121-111-11 5T5�U14��2; BENEFIT AREA 0 BENEFIT AREA C CITY BOUNDARY —411-11 9AIIl- '11A'17 -1 83 11117 Ill 14 11-14-111 711 ........... rzu ,o 111--47 1111 21 IIACT ..... ... . . 21D Ir-11, 1 13111 14 1.11 \ I — 14 . :u. 6 xpo1 110-131- 9 ,ors 4 600-244-11 1.17 -2 4111 .17 4, . ..... Jl I HARRIS & ASSOCIATES .. ...... 1" Park. Suite "' CA 92614 0 (949) 655-3900 FAX (949) 655-3995 2012-13 eoun1,dw 113112012 REDUCED SCALE CITY OF TUSTIN LANDSCAPE AND LIGHTING DISTRICT PETERS CANYON ASSESSMENT DIAGRAM REGIONAL FOR THE PAIc 2012-13 FISCAL YEAR LAND USE MAP LEGEND Residential Commercial 112-411-45 - 5T121 4'��2 'Hy, 1a 11 41 va. . . Park, Government Coll Course City Boundary 11 4"- loo-2-11 -1 4r ."A"14 11A11 "02 1111 14 �4` zw Cs 12. 1- 14 " M 1 'H 17 "4 .......... _44 ,2_", R _7 ,H 1-- 17 ,R4 5 50 14 Ir �3 17 IHIU 5 138_3,,5N� 7,H,7W921 11- 1.. 11127. D2 IIA1,1" ixae 11 1H1 1,7 1H. 1� �A 14 4 600-244-11 en 13�"A"17"21'2*1 H11 01 IjU 371 afro / l 119 4%3 N. 1-4 �11 1H A-, HARRIS & ASSOCIATES .. ...... 1" p"', Suite "' CA 92614 ® (949) 655-3900 FAX (949) 655-3995 --13 W1 ATTACHMENT 4 Assessment Engineer Letter, date 4/23/2012 H a rr s & Assodates. Shaping the Future, One Project at a Times April 23, 2012 Mr. Dana Kasdan, P.E. City of Tustin 300 Centennial Way Tustin, CA 92780 Re: General, Benefit Analysis Tustin Landscape and Lighting District Dear Dana, The California courts have made several rulings recently involving benefit assessment districts that were challenged. These rulings have change the way benefit assessments have been prepared since the passage of Proposition 218 in November, 1996 (which created Article X111C and XlllD of the California State Constitution). A summary of each of the rulings is attached. Proposition 218 has always required the separation of general and special benefits to properties and requires that only special benefits be assessed. The rulings state: General benefits must not only be identified, they must be quantified. General benefits include benefits conferred on the public at large. Special benefit should be based on a property's proximity to the improvement. As part of our annual review of the Tustin Landscape and Lighting District (the "TLLD"), we must take into consideration any changes in law, as well as recent court rulings, as this is a constitutional issue. Arterial LiAtin We have determined that a portion of the arterial lighting maintenance is a general benefit to the public at large. The lighting for arterial streets is designed to cover the larger traffic area of the street, which is required to handle the higher volume of traffic on the roadway, much of which would be considered "thru traffic" (meaning that it does not have an origination or destination within the TLLD). That portion of the arterial lighting above what is required to illuminate a typical residential neighborhood is for increased vehicular traffic volume and is a general benefit. The typical local light is 5,800 lumens whereas the arterial light is 16,000 lumens, therefore 63.75% of the arterial light cost is general benefit. We have allocated the arterial lighting costs to general benefit as follows: Arterial and Collector Lighting total budget $101,200.00 Arterial Lighting portion of budget (375 lights/760 total lights) = 49.34% of total budget $49,934.21 Arterial Lighting General Benefit (16,000 lumens — 5,800 lumens) / 16,000 = 63.75% $31,833.06 rAtustin\fy 12-13\corresp\1tr - dk.docx 34 Executive Park, Suite 150 Irvine, CA 92614-4705 949.655.3900 f.949.655.3995 Irvine@harris-assoc.com Dana Kasdan, P.E. City of Tustin April 23, 2012 Page 2 Slope Landscaping We have determined that the maintenance of the slopes along the cast side of Jamboree Road do not provide a special benefit to the properties in the TLLD due the proximity of the improvements. These slopes are more appropriately a special benefit to the properties on the east side of Jamboree Road. Therefore, the slope maintenance is either a general benefit due to proximity or a special benefit to property outside the TLLD. In either case, they are not assessable costs. These slopes reflect 8.0588% of the total landscaping maintained in the district (4.11 AC/51 AC). We have allocated the east side Jamboree Road slope maintenance costs to general benefit as follows: Park, Trail and Slope Landscaping total budget $598,000.00 Jamboree Road east side slopes general benefit 4.11 acres / 51 acres = 8.0588% $48,191.62 Please let me know if you have any questions or comments. Attachment: Summary of Court Rulings MORE I Harris & Associates. SEEMS Recent Court Rulings Related to Proposition 218 Assessment Analyses Since the passage of Proposition 218 there have been six (6) recent court rulings that are important to consider for benefit assessments. They are summarized below: Silicon Valley Taxpayers Association vs. Santa Clara County Open Space Authority, Supreme Court. One of the primary findings of this case was that the improvements /services to be funded must be identified to a level sufficient to establish whether or not a parcel will receive a special benefit from the improvement. • The Engineer's Report did not attempt to measure the benefits that accrued to particular parcels. • General benefits are not restricted to benefits conferred only on persons and property outside the assessment district, but can include benefits both conferred on real property in the district or the public at large. The Engineer's Report assumed that people and property within the assessment district will receive no general benefit, only special benefit. The Court stated, "Under these circumstances, if everything is special, then nothing is special. " • The Engineer's Report's proportionality analysis failed because the special assessment was based on the agency's projected annual budget rather than a calculation or estimation of the cost of a particular public improvement that will be financed. The Court stated, "An assessment that works backward by starting with an amount taxpayers are likely to pay, and then determines an annual spending budget based thereon, does not comply with the law governing assessments, either before or after Proposition 218. " • The Engineer's Report contained no detailed analysis on how specific properties would benefit from their proximity to the permanent public improvement. Robert Dahms vs. Downtown Pomona Property, Appellate Court. The Court ruled that parcels can receive a special benefit from improvements funded by assessments if the services funded by the assessment are over and above those already provided by the City, so long as the assessment does not exceed the reasonable cost of the proportional special benefit conferred. • If assessments imposed on some parcels are less than the reasonable cost of the proportional special benefit conferred on those parcels, then the discounted assessments do not violate Proposition 218 so long as those discounts do not cause the assessments imposed on the remaining parcels to increase above the proportional special benefit conferred on those parcels. Therefore, specific land uses or parcels can receive reduced assessments, as long as the reduction is not financed by the assessments. • The use of multiple property characteristics to determine the proportional special benefit is appropriate. Because not all parcels in the district are identical in shape and other characteristics, some will receive more special benefit than others. The district used a combination of front footage, building size and lot area to determine the proportional special benefit. Page I of 3 Harris skates. m The 45-day oeckx( between the mailing of the notice ofpublic hearing and the public hearing is calculated by excluding the day of the mailing and including the day ofthe Town m[Tiburon vs. Jimmie D.Bwnander, Appellate Court. |n its review of this case, the Court found that assessments done on the basis of differential costs to establish benefit zones violated the requirement that the assessments be determined in proportion to the special benefits received. • The uaeeymmen1 failed to meet the proportionality requirements of Proposition 218. The assessment was based largely on cost considerations rather than proportional special benefits. • An assessment represents the eohneb' of the cost of an improvement, less any amount attributable togeneral honeD1m, allocated to individual properties in proportion tu the relative special benefit conferred nu the property. • Proposition 218 specifies that the "proportionate special benefit derived by each identified puruc| mhu|| be determined in relationship to the entirety of the capital uom| of a public innprnveznent..." Thus Proposition 210 contemplates that proportionate special benefit is function of the total cost ofu project, ootco$mdetenninedonopropeoy-hv-pnopedyhumiaor moeigbbochnod-by-neighbocboodbasis. • Zones cannot he based on cost; they must bu based on special benefit. Steven Bentz vs County of Riverside, Appellate Court. This case reaffirmed the requirement that assessments must be based upon opcuiu| benefit, and therefore the general benefit must bc identified and quantified in order to establish the level of special benefit that exists. w]he Court agreed that the County was required to deten-nine the amount of any assessable special benefits hv analyzing the general and special benefits ofthe entire Park Master Plan. • Missing from the Engineer's Report was an unu|vaio of the quantity or extent im which the general public may be expected to use or benefit from parks in nu|u1ioo to the quantity or extent to which residential properties that were assessed may use or benefit from parks. • /tv/am unclear in the Engineer's Report that occupants will use or benefit from parks in u different rnuuoec or more iotuomcly` than persons from other communities who were not assessed. • The Engineer's Report did not address whether residents who live in close proximity to o park may be rcumouuh|y expected to use that park just as often, over time, as residents who live several miles away. Concerned Citizens vs West Point Fire Protection District, Appellate Court. This case calls into question the ability of local governments to impose assessments to fund aorvoca or facilities for Uno protection, park muioionuooe or other services. In order to levy assessments for these purposes, u |mmd government must be able 10 clearly demonstrate that the services provide o special beucfitto property and separate the general benefits from the mpcoiu} benefits. This case is under review by the California Supreme Court with u ruling anticipated iu late 20]2or early 2Al3. Page %o[3 1MM I Hards & Associates~ Golden Hill Neighborhood Association, Inc. vs City of San Diego, Appellate Court. This case clarified the need for a strong administrative record for the formation of an assessment district. The weighting of the assessment ballots was not sufficiently explained in the City's formation documents or the Engineer's Report; therefore, the assessment balloting was deemed invalid. In addition, the failure to separate and quantify general and special benefits rendered the assessment and formation of the district constitutionally infirm. Page 3 of 3 ME I Harn's & Associates,..